Georgia Private School Tax Credit

The deadline for submitting paperwork to Apogee for donating for the 2015 tax year, May 1, is now past.

What is the Georgia Private School Tax Credit?

The tax credit program was started in 2008 and offers a unique opportunity to support your private school of choice for “free” while providing scholarship opportunities to incoming students.

Donors will receive a dollar for dollar tax credit against their Georgia income tax liability in an amount equal to the actual amount donated or the annual donation maximum noted below. Unused tax credits are carried forward to future tax years, so unused credits are not lost.

How can this tax credit benefit both Wood Acres and my family?

Under the new law, you can redirect a portion of your Georgia income tax liability to provide scholarship assistance to incoming Wood Acres students. Eligibility requirements include (a) students who are currently enrolled in public school or (b) current Wood Acres students in our 4-year-old Early Childhood program and who will be enrolling in our Kindergarten program for the 2016-2017 school year.

You will receive a tax credit on your state income taxes and a charitable contribution deduction on your federal incomes taxes for the amount donated. For married couples filing jointly, the maximum tax credit-eligible contribution is $2,500 ($1,000 as an individual).

Who qualifies for the scholarship?

Families who are eligible for the scholarship for the 2016-2017 school year include students who are currently enrolled in public school or who are eligible to enroll in a public Pre-K or Kindergarten program. The latter category includes current Wood Acres students in our 4-year-old Early Childhood program and who will be enrolling in our Kindergarten program for the 2016-2017 school year. Wood Acres students who were awarded an Apogee Scholarship for the current school year are also eligible for the 2016-2017 school year. Scholarship recipients must be current Georgia residents.

Parents or guardians interested in applying for Wood Acres scholarships should contact the Admissions Department for application materials (with the application you will need to include a personal balance sheet that reflects your assets and liabilities, a copy of your 2015 federal tax return(s) or your most recent tax return(s) if the one for 2015 has not yet been filed and a short explanation setting forth your case for needing the financial assistance of the Apogee Scholarship) that include selection criteria and pertinent deadlines. The deadline for scholarship applications is May 1st.

How much can I contribute?

IndividualA single individual or head of household will receive a credit against their Georgia income tax liability in an amount equal to the actual amount expended or $1,000 per tax year, whichever is less. Electronic filing of state individual income tax return is available for taxpayers claiming this credit.

MarriedThe amount of the tax credit is equal to the actual amount expended or $2,500 per tax year, whichever is less. Electronic filing of state individual income tax return is available for taxpayers claiming this credit.

Corporate DonorState income tax credit limit up to 75% of the corporation’s income tax liability or the actual amount donated, whichever is less. Corporate donors also have the option to name a dedicated scholarship fund in company’s name.

What happens if my donation exceeds my state tax liability?

The tax credit is not a “refundable” credit. However, it is not lost; any excess over your 2015 Georgia income tax will be carried forward for up to five (5) successive tax years.

How does it work?

We have partnered with Apogee Georgia School Choice Scholarship Fund, a state approved Student Scholarship Organization (SSO), to enable the Wood Acres community to take advantage of this program. With a donation to the Apogee Georgia School Choice Scholarship fund, a Georgia state income tax credit is available to you for the tax year the donation is made. Your donation can also be used as a charitable contribution deduction on your Federal tax return.

What if I am subject to Federal Alternative Minimum Tax (AMT)?

This program can provide an added “bonus” benefit to families subject to the Federal Alternative Minimum Tax. By using this tax credit program you are converting a state income tax deduction (which is added back and subject to AMT tax) to a charitable donation (which is exempt from AMT). As such you can “profit” up to 29% on the amount donated. This could lower your AMT liability and reduce your overall federal tax:

$1,000 donation = $1,000 GA tax credit + $290 federal AMT savings

$2,500 donation = $2,500 GA tax credit + $725 federal AMT savings

Can corporations receive tax credits?

Yes, state income tax credits up to 75% of the corporation’s income tax liability are available to qualifying corporations. An option to have the scholarship named in the corporation’s name is also available. Contact Wood Acres for more information.

Can my employer make a matching gift?

Yes, if your employer offers a charitable gift matching program your donation to the fund is eligible for a matching gift because Apogee Georgia School Choice Scholarship Fund is a qualified 501(c)(3) charitable organization. Please forward your company’s matching gift program forms to Apogee and they will secure the matching gift on your behalf.

How do I participate?

To redirect your Georgia tax dollars to support The Wood Acres School:

Apogee will process your donation package and submit all necessary paperwork to the Georgia Department of Revenue. Using Apogee to submit Wood Acres donation packages as a group enables the state of Georgia to process the packages faster and Apogee can monitor the process for the school.

You will receive an approval letter from the Department of Revenue. Please forward a copy of the approved IT-QEE-TP1 form to the address below: